Bitcoin, one example of a digital currency, functions as a medium of exchange like cash, but isn’t backed by a government or have the status of legal tender.
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In this brave new world of crypto and the blockchain, it pays to know the language. Here’s a list of terms around virtual currencies and the technology that supports them
Cryptocurrency
Digital currencies — such as Bitcoin — that function as mediums of exchange like cash, but aren’t backed by a government or have the status of legal tender. These virtual currencies are supported by encryption and other cryptographic technologies and allow for secure online transactions without third-party middlemen.
Blockchain
The technology that supports cryptocurrency. Blockchain is an encrypted database powered by computer networks that can store, create and share information. Information is stored as “blocks” of data and can be perceived in much the same way as cellular phone minutes or bytes of data. Those blocks are protected by encryption and can be connected to one another — the blockchain. As data comes in and fills a block, that links to the previous block.
Web3
Web3 is described as the latest iteration of the Internet built on blockchain technology.
Non-fungible tokens (NFTs)
Non-fungible tokens are financial securities made up of digital data that cannot be copied and are stored in the blockchain. These tokens can be transferred by the owner and thus…
